Our website uses cookies to enhance the visitor experience (what's a cookieCookies are small text files that are stored on your computer when you visit a website. They are mainly used as a way of improving the website functionalities or to provide more advanced statistical data.). Are you happy for us to use cookies during your visits?
Please note: continuing without making a choice equates to giving us your consent, which you can withdraw at any time via our cookies policy page.


Making Tax Digital

Newsletter issue - May 2021

From 1 April 2021, all compulsorily VAT-registered businesses that submit electronic VAT returns are required to digitally link the business records to their VAT returns. This must be done by using HMRC approved bookkeeping software. This can include spreadsheets prepared in Microsoft Excel, or similar software, but the key point is that the data must flow automatically from the initial manual input to the VAT return. HMRC does not accept that the use of cut-and-paste or copy-and-paste to move information between software programs, or within different parts of a software program, to be a digital link.

Initially, there was a soft-landing period where these rules were not being enforced, e.g. cut-and-paste techniques were still being permitted, though HMRC were encouraging businesses to follow them as closely as possible. From 1 April 2021, HMRC will enforce the rules and penalties will be charged for non-compliance.

Businesses should refer to the information contained in VAT notice 700/22 for further information regarding the Making Tax Digital for VAT initiative and their corresponding responsibilities.

Want to talk to us now?

Call us on 01254 772 607

 

Hayes & Co Twitter profile

 

Request a callback

Click here to let us know a good time to get back to you